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Information fusion is a kind of theory and method to deal with multi-sources information. It consists of three main steps: data acquisition, data processing and decision-making. Research in Information Fusion grows rapidly. Hundreds of papers in this area, including theory and practical applications, appear every year in academic journals, conference proceedings and technical reports. The concepts, advantage, basic frame, basic model, basic algorithms of Information fusion are discussed in this article. The recent research and developments of information fusion in fault diagnosis and equipment monitoring are summarized and reviewed. The possible future trends are also pointed out.